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Installation of Sikalbaha power plant uncertain

Wednesday, 31 October 2007


FE Report
Installation of the 150-megawatt (MW) power station at Sikalbaha in Chittagong has become uncertain due to lack of efforts to remove some anomalies in the tender process, sources said.
The advisory council on the public purchase on October 16 sent back the financial offers of the contractor after finding a lack of transparency in the tender evaluation process, the source said.
The Chinese company - Sino Hydropower Corporation Limited- has been selected to get the work order as the lowest bidder for setting up the US$82 million Sikalbaha power project.
The source said the purchase committee sought some clarification from the power division on the tender evaluation process. But the power division has yet to take a move in this regard.
A source in the Power Development Board (PDB), the executing agency of the project, told the FE that earlier the Board was ready to give work order to the contractor by October 31 for installing the plant and starting commercial electricity generation within 18 months.
Requesting for anonymity, some officials in Power Division and PDB said due to delay in awarding contract to the selected company the installation of the government-funded Chandpur 150MW is also uncertain.
The company -- Harbin Power -- has now refused to set up the Chandpur plant as the project cost has risen due to the procrastination on the part of the concerned authority to give work order in time.
The company says the prices of machinery and equipment have risen in the world market due to the delay.
The sources also said the concerned government authority is now hesitant to make a further move as a section of officials has questioned transparency in tender evaluation process.
The sources, however, said that a committee in the PDB had selected the bidder, maintaining a cautious approach and transparency.